Perfect Pigments Has 3,500 Gallons of Paint in WIP Inventory,with

question 165

Multiple Choice

Perfect Pigments has 3,500 gallons of paint in WIP Inventory,with 80% of materials already added.What are equivalent units in ending WIP Inventory for materials if the paint is 50% through the process?

• A)2,800
• B)1,750
• C)0
• D)1,050

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Definitions:

Input Prices

refer to the costs associated with the raw materials and components required for the production of goods and services.

Variable Inputs

Resources used in production that can be adjusted in the short term to change the level of output.

Long Run

A period of time in which all factors of production and costs are variable, allowing firms to adjust to market conditions.

Capital

Assets that are used in the production of goods and services, including physical assets like machinery and buildings, and intangible assets like patents and copyrights.